Eastern Shore Natural Gas Company

First Revised Volume No. 1

Effective Date: 08/01/1997, Docket: TM97-12-23-000, Status: Effective

Eightieth Revised Sheet No 10 Eightieth Revised Sheet No 10 : Superseded

Superseding: Seventy-Ninth Revised Sheet No 10

NOTICE OF RATE CHANGE ADJUSTMENTS

(COMMODITY OR DELIVERY CHARGE) PER DT

-------------------------------------

(Continued)

(Sec.21)(2) (Sec.23)(2)

Rate Base Purchased PGA Transport Transport

Schedule Tariff Gas Cost Adj. Surcharge Gas Cost Adj. Surcharge

-------- Rate(1) Current Cumulative Adj. Current Cumulative Adj.

------- ------- ---------- --------- ------- ---------- ---------

CD-1 Contract Demand

----------------------

3.2 (a) Demand Charge $20.5022 -0- -0- (.0261) 1.7980 1.6933 .3336

3.2 (b) Commodity Charge 2.8797 .2705 (.2676) .1020 (.0130) (.0031) (.0009)

CD-E Contract Demand

----------------------

3.2 (a) Demand Charge 19.6222 -0- -0- (.0261) 1.7980 1.6933 .3336

3.2 (b) Commodity Charge 2.8797 .2705 (.2676) .1020 (.0130) (.0031) (.0009)

G-1 General Service

----------------------

3.2 (a) Demand Charge 20.5022 -0- -0- (.0261) 1.7980 1.6933 .3336

3.2 (b) Commodity Charge 2.8797 .2705 (.2676) .1020 (.0130) (.0031) (.0009)

E-1 Excess Gas Service

-------------------------

3. Rate 3.5537 .2705 (.2676) .1011 .0461 .0526 .0101

I-1 Interruptible Gas Service

--------------------------------

3. Rate 3.5537 .2705 (.2676) .1011 .0461 .0526 .0101

(1) The Base Tariff Rate is the effective rate on file with the Commission excluding adjustments approved by the Commission.

(2) Section of General Terms and Conditions of this FERC Gas Tariff.

Estimated average commodity cost of gas in last scheduled PGA: $2.3384. Current estimated average commodity cost of gas in latest PGA (rate

currently being charged): $2.3384.